CREDIT NUMBER 7571-MG
CREDIT NO. 6245-MG (Third Amendment)
CREDIT 6818-MG (Second Amendment)
Financing Agreement
(Second Additional Financing to the Integrated Urban Development and Resilience
Project for Greater Antananarivo)
between
REPUBLIC OF MADAGASCAR
and
INTERNATIONAL DEVELOPMENT ASSOCIATION
FINANCING AGREEMENT
AGREEMENT dated as of the Signature Date between REPUBLIC OF
MADAGASCAR (“Recipient”) and INTERNATIONAL DEVELOPMENT
ASSOCIATION (“Association”) for the purpose of (i) providing additional financing for
activities related to the project described in the financing agreement for the Integrated
Urban Development and Resilience Project for Greater Antananarivo Project (“Original
Project”) between the Recipient and the Association dated June 1, 2018 as amended on
December 18, 2020 (“Original Financing Agreement”); and (ii) amending the Original
Financing Agreement and First Additional Financing Agreement, as such amendments are
highlighted in this agreement and reflected in Section III of the Appendix to this
Agreement.
WHEREAS: (A) under an agreement, dated June 1, 2018, between the
Recipient and the Association (“Original Financing Agreement”), the Association agreed
to provide the Recipient with a credit in an amount equivalent to fifty-one million six
hundred thousand Special Drawing Rights (SDR 51,600,000) (“Original Financing”) to
assist in financing the project described in Schedule 1 to the Original Financing Agreement
(“Original Project”);
(B) On December 18, 2020, the Association agreed to provide additional
financial assistance in support of activities related to the Original Project by providing a
credit in an amount equivalent to thirty-five million five hundred thousand Special
Drawing Rights (SDR 35,500,000) (“First Additional Financing”);
(C) The Recipient has requested the Association for additional financing to fill the
financing gap that has emerged for purposes of implementation of the Original Project;
(D) The Association has agreed to provide additional financial assistance in
support of activities related to the Original Project and described in Schedule 1 to this
Agreement (“Project”) by providing a credit in an amount equivalent to eleven million four
hundred thousand Special Drawing Rights (SDR 11,400,000) (“Second Additional
Financing”), on the basis, inter alia, of the foregoing to extend such additional assistance
to the Recipient upon the terms and conditions set forth in this Agreement.
NOW THEREFORE the Recipient and the Association hereby agree as follows:
ARTICLE I — GENERAL CONDITIONS; DEFINITIONS
1.01. The General Conditions (as defined in the Appendix to this Agreement) apply to
and form part of this Agreement.
1.02. Unless the context requires otherwise, the capitalized terms used in this Agreement
have the meanings ascribed to them in the General Conditions or in the Appendix
to this Agreement.
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ARTICLE II — FINANCING
2.01. The Association agrees to extend to the Recipient a credit, which is deemed as
Concessional Financing for purposes of the General Conditions, in an amount
equivalent to eleven million four hundred thousand Special Drawing Rights
(SDR 11,400,000) (variously, “Credit” and “Financing”), to assist in financing the
project described in Schedule 1 to this Agreement (“Project”).
2.02. The Recipient may withdraw the proceeds of the Financing in accordance with
Section III of Schedule 2 to this Agreement.
2.03. The Maximum Commitment Charge Rate is one-half of one percent (1/2 of 1%)
per annum on the Unwithdrawn Financing Balance.
2.04. The Payment Dates are April 15 and October 15 in each year.
2.05. The principal amount of the Credit shall be repaid in accordance with the
repayment schedule set forth in Schedule 3 to this Agreement.
2.06. The Payment Currency is Dollar.
ARTICLE III — PROJECT
3.01. The Recipient declares its commitment to the objective of the Project. To this end,
the Recipient shall carry out the Project in accordance with the provisions of
Article V of the General Conditions and Schedule 2 to this Agreement.
ARTICLE IV — EFFECTIVENESS; TERMINATION
4.01. The Effectiveness Deadline is the date one hundred eighty (180) days after the
Signature Date.
4.02. For purposes of Section 10.05(b) of the General Conditions, the date on which the
obligations of the Recipient under this Agreement (other than those providing for
payment obligations) shall terminate is twenty years after the Signature Date.
ARTICLE V — REPRESENTATIVE; ADDRESSES
5.01. The Recipient’s Representative is its minister in charge of economy and finance.
5.02. For purposes of Section 11.01 of the General Conditions:
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(a) the Recipient’s address is:
Ministry of Economy and Finance
PO Box 61
101 Antananarivo
Republic of Madagascar; and
(b) the Recipient’s Electronic Address is:
E-mail: tresorddp@gmail.com
5.03. For purposes of Section 11.01 of the General Conditions:
(a) the Association’s address is:
International Development Association
1818 H Street, N.W.
Washington, D.C. 20433
United States of America; and
(b) the Association’s Electronic Address is:
Telex: Facsimile:
248423 (MCI) 1-202-477-6391
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AGREED as of the Signature Date.
REPUBLIC OF MADAGASCAR
By
_____________________________________/s1/
Authorized Representative
Rindra Hasimbelo Rabarinirinarison
Name: __________________________/n1/
des Finances
Ministre de l'Economie et /t1/
Title: __________________________
12-Jun-2024
Date: __________________________ /d1/
INTERNATIONAL DEVELOPMENT ASSOCIATION
By
_____________________________________/s2/
Authorized Representative
Atouseck
Name: __________________________/n2/
Country Manager
Title: __________________________ /t2/
11-Jun-2024
Date: __________________________/d2/
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SCHEDULE 1
Project Description
The objective of the Project is to enhance urban living conditions and flood
resilience in selected low-income neighborhoods of Greater Antananarivo and to improve
the Recipient’s capacity to respond promptly and effectively to an Eligible Crisis or
Emergency.
The Project consists of the following parts under the Original Project:
Part 1. Improving Urban Drainage, Services and Resilience in Targeted Areas
1.1 Improvements of Canal, Drainage and Sanitation Infrastructure. Support to
the Recipient to ensure flood risk mitigation through structural measures by
financing public infrastructure investments for flood mitigation and drainage
improvements, including: (i) No-Regret Priority Engineering Solutions identified
by the Recipient, including inter alia, (a) the dredging from the bottom of Canal
C3; and (b) the rehabilitation of Canal C3 and the retention ponds, the
rehabilitation of the dikes, the rehabilitation of the pumping stations, the
rehabilitation of embankments, connected roads, pathways and footbridges, urban
infrastructure along Canal C3, hydraulic structures and related works; (ii)
consulting services for the preparation of the engineering designs and supervision,
and Safeguards Documents; (iii) in-kind resettlement compensation costs related
to the impact of above-mentioned investments;
(iv) cash compensation costs related to resettlement; (v) construction of
resettlement sites; and (vi) construction of a dedicated sludge disposal site.
1.2 Neighborhood Upgrading. Support to the Recipient to finance: (i) urban
infrastructure investments using a No-Regret Urban Upgrading Approach and a
Structural Urban Upgrading Approach in the Targeted Areas, such investments to
be identified through the participatory preparation of the Detailed Urban Plan for
the Targeted Areas, and aimed at: (a) mobility and accessibility; (b) access to basic
services; (c) public and recreational spaces; and (d) building resilience; and
(ii) consulting services for the preparation of the Target Areas Detailed Urban Plan,
engineering designs and supervision efforts, social analysis, behavioral audit,
stakeholders’ mapping and engagement plan and safeguards related instruments;
(iii) in-kind resettlement compensation costs related to the impact of above-
mentioned investments; and (iv) cash compensation costs related to resettlement.
1.3 Citizen Engagement. Support to the Recipient to establish and implement a
system of sustainable citizen engagement to contribute both to the sustainability of
infrastructure and investments in the Project's Targeted Areas and strengthen
citizen participation, through: (i) technical assistance to support the establishment
of Local Consultation Structures (LCS) for promoting inclusive participation of all
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local stakeholders; (ii) the development of a Stakeholder Engagement Plan (SEP)
to ensure the participation and the commitment of all stakeholders; (iii) the
development and implementation of the GRM; (iv) the carrying out of bi-annual
Beneficiaries Feedback Survey and public disseminations activities of the project;
and (v) capacity building for local communities for disaster preparedness.
Part 2. Strenghtening Institutional Capacity for Resilient Urban Governance
2.1 Strengthening capacity for Inclusive and Resilient Urban Management. Support
to the Recipient to: (i) assist the Ministry of Decentralization and Planning (MDAT)
and Commune Urbaine d'Antananarivo (CUA) to internalize the recommendations
of the Detailed Urban Plan and the GA Urban Master Land Use Plan through the
development of a monitoring and evaluation instrument for urban growth and a
training and capacity building program; and (ii) prepare an Integrated Slum
Upgrading Strategy and Affordable Housing Strategy for Greater Antananarivo.
2.2 Municipal Management Support to the Recipient to modernize public sector
management by undertaking policy reforms aimed at: (i) increasing local revenue
mobilization while promoting transparency and accountability and oversight
mechanisms; and (ii) improving human resources processes and systems.
2.3 Capacity Enhancement and Sector Reform for Environmental Sanitation
Support to the Recipient to improve financing mechanisms for better storm water
drainage and flood protection service delivery, establish clearer responsibilities of
the key agencies in managing and operating the city flood control and drainage
systems; and enhance the capacity of SAM to provide reliable solid waste
management, through: (i) carrying out of the APIPA study and the canal -dike
maintenance plan; (ii) technical assistance for primary solid waste collection and
coordination with SMA; (iii) elaboration and adoption of a solid waste
management system and strategy; (iv) technical assistance to the IUWM Platform
for APIPA and SMA reforms to strengthen each agency’s capacity and streamline
their roles and responsibilities; and (v) support of sector reforms identified by the
IUWM Platform.
Part 3. Project Management, Coordination, Monitoring and Evaluation
Support to the Recipient for: (i) incremental Operating Costs (including delegated
contract management costs); (ii) fiduciary activities; (iii) audit, complaints and
grievances mechanism, studies and assessments required under various project
components; (iv) communication; and (v) monitoring (including of safeguards
processes) and evaluation.
Part 4. Contingent Emergency Response
Providing immediate response to an Eligible Crisis or Emergency, as needed.
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SCHEDULE 2
Project Execution
Section I. Implementation Arrangements
A. Institutional Arrangements
The Recipient shall, throughout Project implementation, maintain the following
institutional arrangements, as further described in the PIM:
1. The Recipient shall vest overall responsibility for Project implementation in the
Ministry in charge of Territorial Planning.
2. Project Steering Committee
(a) The Recipient shall, at all times during Project implementation, maintain
the Project Steering Committee (“PSC”) with composition and mandate
acceptable to the Association.
(b) The PSC shall be chaired by the Recipient’s Ministry in charge of Territorial
Planning and composed of, inter alia, representatives from the Ministries in
charge of Economy and Finance, Agriculture, Interior and Decentralization,
Water-Sanitation-Hygiene, Population, Social Protection and Women,
Environment and Sustainable development, the Commune Urbaine
d’Antananarivo, the Communes de Bemasoandro, Anosizato and
Andranonahoatra, representatives of APIPA, SMA, representatives of
districts and the Urban Planning Agency of the Greater Antananarivo.
(c) The PSC shall be responsible for providing overall strategic guidance,
general oversight of Project implementation, performance monitoring,
cross-sectoral coordination and consistency with sector policy and
strategies, the approval of Annual Work Plans and Budgets, procurement
plans, annual audit reports and progress reports.
(d) The PSC shall meet at least twice annually.
3. Project Management Unit
(a) The Recipient shall, at all times during Project implementation, maintain
the Project Management Unit (“PMU”) with composition and mandate
acceptable to the Association.
(b) The PMU shall, at all times during Project implementation, retain the
following staff, inter alia, each with terms of reference, qualifications and
experience satisfactory to the Association: (i) a coordinator; (ii) an
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accountant; (iii) a financial management specialist; (iv) a procurement
specialist; (v) an environmental safeguards specialist; (vi) a social
safeguards specialist; and (vii) a monitoring and evaluation specialist, and
other such staff as may be necessary for Project implementation.
(c) The PMU shall be responsible for the following activities inter alia:
(i) project implementation and day to day management of project activities
including coordination, fiduciary management, procurement,
environmental and social impact mitigation, and the preparation of IFRs
and project reports; (ii) managing technical inputs from line ministries,
municipalities and relevant technical agencies; (iii) preparation of
consolidated technical and financial project reports; and (iv) ensuring
dissemination of lessons learned.
B. PIM
1. The Recipient shall carry out the Project in accordance with an updated Project
Implementation Manual (“PIM”), which shall be updated no later than one (1)
month after the Effective Date, in form and substance acceptable to the
Association.
2. The PIM shall contain detailed arrangements, procedures and mechanisms for:
(a) institutional coordination and Project implementation; (b) the roles and
responsibilities of all involved stakeholders; (c) Project budgeting, accounting,
disbursement and financial management; (d) capacity building activities;
(e) procurement; (f) safeguards; (g) monitoring, evaluation, reporting and
communication; and (h) other such administrative, financial, technical and
organizational arrangements and procedures as shall be required for purposes of
implementing the Project.
3. Except as the Association shall otherwise agree, the Recipient shall not assign,
amend, abrogate the PIM, or any provision thereof.
4. In the event of any conflict between the provisions of the PIM and those of this
Agreement, the provisions of this Agreement shall prevail.
C. Annual Work Plans and Budgets
1. Each year the Recipient shall prepare a draft annual work plan and budget for the
Project (including Training and Operating Costs) for each subsequent year of
Project implementation, of such scope and detail as the Association shall have
reasonably requested.
2. The Recipient shall furnish to the Association, not later than November 30 of each
year, the annual work plans and budgets approved by the Project Steering
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Committee for the Association’s review and approval; except for the annual work
plan and budget for the Project for the first year of Project implementation, which
shall be furnished no later than one (1) month after the Effective Date. Only the
activities included in an annual work plan and budget expressly approved by the
Association (each an “Annual Work Plan and Budget”) are eligible to be financed
from the proceeds of the Financing.
3. Training shall be carried out on the basis of Annual Work Plans and Budgets,
which shall, inter alia, identify: (a) particulars of the training envisaged; (b) the
personnel to be trained; (c) the selection methods and criteria of the institution or
individuals conducting such training; (d) the institution conducting such training
if identified; (e) the purpose and justification for such training; (f) the location and
duration of the proposed training; and (g) the estimate of the cost of such training.
4. The Recipient shall ensure that the Project is carried out in accordance with the
Annual Work Plans and Budgets.
5. Annual Work Plans and Budgets may be revised as needed during Project
implementation subject to the Association’s prior approval.
D. Contractual Arrangements
1. The Recipient shall, for the purposes of carrying out of Parts 1.1 and 1.2 of the
Project, maintain throughout Project implementation, and update no later than one
(1) month after the Effective Date to reflect this Financing, the Delegated Contract
Management Agreement (“Management Agreement”) with the Service Provider,
signed on March 26, 2019, whose form and substance is satisfactory to the
Association; (b) ensure that all Project activities to be undertaken by the Service
Provider under the Management Agreement shall be carried out with due diligence
and efficiency and in accordance with sound technical, financial, procurement and
managerial standards and practices acceptable to the Association; and (c) exercise its
rights and carry out its obligations under the Management Agreement in such a
manner as to protect the interests of the Recipient and the Association and to
accomplish the purposes of the Financing.
2. The Management Agreement shall include the following provisions:
(a) The obligation of the Service Provider to:
(i) carry out its activities under the Management Agreement with due
diligence and efficiency and in accordance with sound technical,
economic, financial, managerial, environmental and social
standards and practices satisfactory to the Association;
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(ii) carry out its obligations under the Management Agreement in such
a manner as to protect the interests of the Recipient and the
Association and to accomplish the purposes of the Financing;
(iii) maintain policies and procedures, which are adequate to enable it
to monitor and evaluate the progress of the Activities carried out
under the Management Agreement; and
(iv) maintain a financial management system and prepare financial
statements in accordance with consistently applied accounting
standards acceptable to the Association, both in a manner
adequate to reflect the operations, resources and expenditures
related to Activities carried out under the Management
Agreement.
(b) The right of the Recipient and the Association to:
(i) request an audit of the financial statements of the Activities
carried out under the Management Agreement by independent
auditors acceptable to the Association in accordance with
consistently applied auditing standards acceptable to the
Association and the prompt transmission of the financial
statements as so audited to the Recipient and the Association;
(ii) inspect the Activities carried out under the Management
Agreement, and any relevant records and documents; and
(iii) obtain all such information as the Recipient or the Association
shall reasonably request relating to the foregoing to be prepared
and furnished to the Recipient and the Association.
3. Except as the Association shall otherwise agree, the Recipient shall not assign,
amend, abrogate or waive the Management Agreement or any provision thereof,
or permit to be assigned, amended, abrogated or waived the aforementioned or any
provision thereof.
4. In case of any conflict between the terms of the Management Agreement and those
of this Agreement, the terms of this Agreement shall prevail.
E. Safeguards
1. The Recipient shall ensure that all terms of reference for any technical assistance
or studies carried out under the Project are consistent with the Association’s social
and environmental safeguard policy requirements, as well as the Recipient’s own
environmental and social laws and regulations.
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2. The Recipient shall thereafter ensure that the Project shall be implemented in
accordance with the guidelines, procedures, timetables and other specifications set
forth in the Safeguards Documents as well as the plans necessary for the
implementation of Part 1.2 of the Project.
3. Except as the Association shall otherwise agree in writing and subject to
compliance with applicable consultation and public disclosure requirements of the
Association, the Recipient shall not abrogate, amend, repeal, suspend or waive any
provisions of any of the Safeguards Documents, nor shall it permit any other entity
participating in the implementation of the Project to do so.
4. Without limitation upon its other reporting obligations under this Agreement, the
Recipient shall collect, compile and submit to the Association, on a semi-annual
basis, reports on the status of compliance with the Safeguards Documents, giving
details of: (a) measures taken in furtherance of the Safeguards Documents;
(b) conditions, if any, which interfere or threaten to interfere with the smooth
implementation of the Safeguards Documents; and (c) remedial measures taken or
required to be taken to address such conditions, including but not limited to the
implementation of a GRM.
5. In the event that any provision of the Safeguards Documents shall conflict with
any provision under this Agreement, the terms of this Agreement shall prevail.
6. The Recipient shall ensure, and cause the Service Provider to ensure, that no works
for construction or rehabilitation under Part 1.1 shall commence until all measures
required to be taken under the Safeguards Documents have been taken in
accordance with the terms of said documents, and in a manner acceptable to the
Association. For that purpose, and without limitation to the foregoing, the
Recipient shall ensure that, prior to the start of works in Targeted Areas under Part
1.1, the resettlement sites are operational in compliance with the terms of the
Safeguards Documents and acceptable to the Association.
F. Financial Management
Intentionally left blank for purposes of this Agreement.
G. Contingency Emergency Response
In order to ensure the proper implementation of Part 4 of the Project, the immediate
response mechanism part (“IRM Part”), the Recipient shall take the following
measures.
1. The Recipient shall:
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(a) prepare and furnish to the Association for its review and approval, an
operations manual which shall set forth detailed implementation
arrangements for the IRM Part, including: (i) designation of, terms of
reference for and resources to be allocated to, the entity to be responsible
for coordinating and implementing the IRM Part (“Coordinating
Authority”); (ii) specific activities which may be included in the IRM Part
Eligible Expenditures required therefor (“Emergency Expenditures”), and
any procedures for such inclusion; (iii) financial management
arrangements for the IRM Part; (iv) procurement methods and procedures
for Emergency Expenditures to be financed under the IRM Part;
(v) documentation required for withdrawals of Emergency Expenditures;
(vi) environmental and social safeguard management frameworks for the
IRM Part, consistent with the Association’s policies on the matter; and
(vii) any other arrangements necessary to ensure proper coordination and
implementation of the IRM Part;
(b) afford the Association a reasonable opportunity to review said proposed
operations manual;
(c) promptly adopt such operations manual for the IRM Part as shall have
been approved by the Association (“IRM Operations Manual”);
(d) ensure that the IRM Part is carried out in accordance with the IRM
Operations Manual; provided, however, that in the event of any
inconsistency between the provisions of the IRM Operations Manual and
this Agreement, the provisions of this Agreement shall prevail; and
(e) not amend, suspend, abrogate, repeal or waive any provision of the IRM
Operations Manual without prior approval by the Association.
2. The Recipient shall, throughout the implementation of the IRM Part, maintain the
Coordinating Authority, with adequate staff and resources satisfactory to the
Association.
3. The Recipient shall undertake no activities under the IRM Part (and no activities
shall be included in the IRM Part) unless and until the following conditions have
been met in respect of said activities:
(a) the Recipient has determined that an Eligible Crisis or Emergency has
occurred, has furnished to the Association a request to include said
activities in the IRM Part in order to respond to said Eligible Crisis or
Emergency, and the Association has agreed with such determination,
accepted said request and notified the Recipient thereof; and
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(b) the Recipient has prepared and disclosed all safeguards instruments
required for said activities, in accordance with the IRM Operations
Manual, the Association has approved all such instruments, and the
Recipient has implemented any actions which are required to be taken
under said instruments.
Section II. Project Monitoring, Reporting and Evaluation
The Recipient shall furnish to the Association each Project Report not later than one month
after the end of each calendar semester, covering the calendar semester.
Section III. Withdrawal of the Proceeds of the Financing
A. General
Without limitation upon the provisions of Article II of the General Conditions and
in accordance with the Disbursement and Financial Information Letter, the
Recipient may withdraw the proceeds of the Financing to: (a) finance Eligible
Expenditures; and (b) repay the Preparation Advance; in the amount allocated and,
if applicable, up to the percentage set forth against each Category of the following
table:
Category Amount of Amount of Amount of Percentage of
the Original the First the Second Expenditures
Financing Additional Additional to be
Allocated Financing Financing Financed
(expressed in Allocated Allocated (inclusive of
SDR) (expressed in (expressed in Taxes)
Credit No. SDR) SDR)
6245-MG Credit No. Credit No.
6818-MG 7571-MG
(1) Goods, works, non- 10,659,600 31,453,000 100% upon full
consulting services, 11,400,000 commitment of
and consulting corresponding
services for the expenditures
Project, except commencing
Canal C3 dredging with Credit No.
works under Part 6245-MG,
1.1(i) (a), and Cash followed by
Compensations Credit No.
under Parts 1.1(iv) 6818-MG, then
and 1.2(iv) this Financing
(2) Works related to 0 1,917,000 100% upon full
Canal C3 dredging 0 commitment of
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under Part 1.1 (i) (a) corresponding
of the Project expenditures
commencing
with Credit No.
6245-MG,
followed by
Credit No.
6818-MG, then
this Financing
(3) Cash Compensation 100% upon full
for Resettlement 0 commitment of
under: corresponding
(a) Canal C3 works 640,400 2,130,000 expenditures
under Part 1.1 (i) commencing
of the Project. with Credit No.
6245-MG,
(b) Pumping station
followed by
works under Part
0 0 Credit No.
1.1 (i) of the
6818-MG, then
Project.
this Financing
(c) Urban
infrastructure
investments Part 0 0
1.2 (i) of the
Project.
(4) Refund of 1,400,000 0 0 Amount
Preparation Advance payable
pursuant to
Section 2.07(a)
of the General
Conditions
(5) Emergency 35,500,000 0 0 100%
Expenditures under
Part 4 of the Project
(6) Unallocated 3,400,000 0 0 100%
TOTAL AMOUNT 51,600,000 35,500,000 11,400,000
B. Withdrawal Conditions; Withdrawal Period
1. Notwithstanding the provisions of Part A above, no withdrawal shall be made:
(a) for payments made prior to the Signature Date; or
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(b) for payments under Category 2 unless and until the sludge disposal site is
operational, in accordance with the requirements of the Safeguards
Documents, and acceptable to the Association; or
(c) for payments under Category 5 unless and until the Association is satisfied
that the following conditions have been met, and has notified the Recipient
accordingly:
(i) the Recipient has determined that an Eligible Crisis or Emergency
has occurred, has furnished to the Association a request to include
activities in the IRM Part of the Project in order to respond to said
Eligible Crisis or Emergency, and the Association has agreed with
such determination, accepted said request and notified the
Recipient thereof;
(ii) the Recipient has prepared and disclosed all Safeguards
Documents (or other required safeguards instruments) required
for said activities, and the Recipient has implemented any actions
required pursuant thereto, all in accordance with the provisions of
Section I. E of this Schedule;
(iii) the Recipient has ensured that the Coordinating Authority has
adequate staff and resources, in accordance with the provisions of
Section I.G.2 of this Schedule, for the purposes of activities in the
IRM Part of the Project; and
(iv) the Recipient has maintained the IRM Operations Manual
approved by the Association, in form and substance acceptable to
the Association pursuant to Section 1.G.1 of this Schedule.
2. The Closing Date is June 30, 2025.
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SCHEDULE 3
Repayment Schedule
Date Payment Due Principal Amount of the Credit
repayable
(expressed as a percentage)*
On each April 15 and October 15:
commencing October 15, 2034 to and including 1.25%
April 15, 2074
* The percentages represent the percentage of the principal amount of the Credit to be
repaid, except as the Association may otherwise specify pursuant to renumbered Section
3.03(b) (originally numbered Section 3.05(b)) of the General Conditions.
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APPENDIX
Section I. Definitions
1. “Affordable Housing Strategy for Greater Antananarivo” means a strategy led by
MDAT, aiming at defining modalities, policies, and instruments (financial and
technical) required to allow a larger number of low-income households access to
decent housing.
2. “Anti-Corruption Guidelines” means, for purposes of paragraph 5 of the Appendix
to the General Conditions, the “Guidelines on Preventing and Combating Fraud
and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”,
dated October 15, 2006 and revised in January 2011 and as of July 1, 2016.
3. “APIPA” means Autorité pour la Protection contre les Inondations de la Plaine
d’Antananarivo, the Antananarivo Flood Protection Agency.
4. “Beneficiaries Feedback Survey” means the survey applied to beneficiaries of the
project by the PMU once every six months in order to determine the level of
satisfaction with the project’s implementation and impacts.
5. “Canal C3 ESIA” means the ESIA prepared specifically for Canal C3.
6. “Canal C3 RAP” means the RAP prepared specifically for Canal C3.
7. “Cash Compensation for Resettlement” means cash to Eligible Households and
Individuals for the purposes of compensating resettlement costs.
8. “Category” means a category set forth in the table in Section III.A of Schedule 2
to this Agreement.
9. “Coordinating Authority” means the entity or entities designated by the Recipient
in the IRM Operations Manual and approved by the Association pursuant to
Section I.G of Schedule 2 to this Agreement, to be responsible for coordinating the
IRM Part of the Project.
10. “Delegated Contract Management Agreement” means the contract described in
Section I.D of Schedule 2 to this Agreement.
11. “Detailed Urban Plan” means a plan that showcases for a selected geographical
area a more detailed guidance to implement, introduce modalities and phasing of
urban development, with regards, among others, to land-use, infrastructure and
service delivery, housing, mobility.
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12. “Displaced Person” means a person who, on account of the execution of an activity
under the Project, has experienced or is likely to experience direct economic and
social impacts caused by: (a) the involuntary taking of land, resulting in:
(i) relocation or loss of shelter; (ii) loss of assets or access to assets; or (iii) loss of
income sources or means of livelihood, whether or not such person must move to
another location; or (b) the involuntary restriction of access to legally designated
parks and protected areas, resulting in adverse impacts on the livelihood of such
person; “Displaced Persons” means all such persons.
13. “E&S Panel” means the panel of independent environmental and social safeguard
experts to be established to provide advice on safeguards matters arising in the
course of Project implementation.
14. “Eligible Crisis or Emergency” means an event that has caused, or is likely to
imminently cause, a major adverse economic and/or social impact to the Recipient,
associated with a natural or man-made crisis or disaster.
15. “Eligible Households and Individuals” means households and individuals who
meet the eligibility criteria to receive cash compensation for resettlement costs
under the RAP.
16. “Emergency Expenditure” means any of the Eligible Expenditures, including
goods, works, non-consulting services, consulting services, Training, and
Operating Costs, set forth in the IRM Operations Manual in accordance with the
provisions of Section I.G of Schedule 2 to this Agreement and required for the
activities included in the IRM Part of the Project.
17. “ESIA” means “Environmental and Social Impact Assessment”, the Recipient’s
documents entitled Étude d’Impact Environnemental et Social (EIES) des Travaux
de remise en état des infrastructures de drainage et de protection contre les
inondations – Version mise à jour and Étude d’Impact Environnemental et Social
(EIES) du projet de site de confinement des boues de curage dated March 2019,
and any subsequent ESIA prepared pursuant to the ESMF.
18. “ESMF” means Environmental and Social Management Framework, the
Recipient’s document entitled Cadre de Gestion Environnementale et Sociale:
Rapport Final disclosed in-country, and on the Association’s website on April
2018, containing policies, guidelines, codes of practice and procedures to be
respected during Project implementation, and setting out the modalities to be
followed in assessing the potential adverse environmental and social impacts of
Project activities (including impacts on natural habitat, forests, and physical
cultural resources, pest management and risks of gender-based violence and sexual
exploitation and abuse) and the measures to be taken to offset, reduce or mitigate
such adverse impacts (including measures that endeavor to prevent and respond to
gender-based violence and sexual exploitation and abuse); as well as for the
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preparation of environmental and social management plans, as such framework
may be amended by the Recipient from time to time, with the prior written
agreement of the Association.
19. “First Additional Financing” means the additional financing for the Original
Project granted by the Association on December 18, 2020 in an amount of SDR
35,500,000.
20. “First Additional Financing Agreement” means the financing agreement for the
First Additional Financing, as amended, as such agreement dated December 18,
2020, has been entered into between the Recipient and the Association (Credit No.
6818-MG).
21. “GA” means Greater Antananarivo.
22. “GA Urban Master Land Use Plan” means a plan, covering the entire
GA geographical area, defining the diverse uses of land across the GA to guide
more optimized urban growth.
23. “General Conditions” means the “International Development Association General
Conditions for IDA Financing, Investment Project Financing”, dated December
14, 2018 (Last revised on July 15, 2023), with the modifications set forth in Section
II below.
24. “GRM” means the Grievance Redress Mechanism of the Project or any other such
mechanism established pursuant to the provisions of Section I.E of Schedule 2 to
this Agreement.
25. “Immediate Response Mechanism Operations Manual” or “IRM Operations
Manual” means the operations manual referred to in Section I.G of Schedule 2 this
Agreement, to be adopted by the Recipient for the IRM Part of the Project in
accordance with the provisions of said Section.
26. “Integrated Slum Upgrading Strategy for Greater Antananarivo” means a
harmonized strategy that defines policies, instruments (financial, technical), and
social modalities and dynamics required for better government and multi-
stakeholder interventions in slum upgrading efforts.
27. “IRM Part of the Project” or “IRM Part” means Part 4 of the Project.
28. “IUWM” means integrated urban water management.
29. “IUWM Platform” means a multi-stakeholder, multi-agency platform created by
MDAT Ministerial decree.
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30. “Local Consultation Structures” or “LCS” means local platforms for dialogue and
consultation organized by the municipality among all local stakeholders involved
in local development issues in accordance with the Ministry of Decentralization
and Interior decree for LCS (Decree No. 2015-957).
31. “Ministry in charge of Territorial Planning” or “MDAT” means Ministère de la
Décentralisation et de l'Aménagement du Territoire, the Recipient’s ministry in
charge of decentralization and planning, or any successor thereto, including as
successor to the Ministry of Land Planning and Public Works (MATP) for
purposes of the Original Financing Agreement and the Additional Financing
Agreement.
32. “No-Regret Priority Engineering Solutions” means those priority engineering
works identified by the Government required to repair, rebuild, or stabilize
drainage or flood protection infrastructure within the target area.
33. “No-Regret Urban Upgrading Approach” means the modality to define quick win
investments that can be implemented in a very short timeframe under Part 1.2 of
Schedule 1 of the Agreement.
34. “Operating Costs” means the incremental expenses incurred on account of Project
implementation, consisting of reasonable expenditures for vehicle operation and
maintenance, communication and insurance costs, banking charges, rental
expenses, office (and office equipment) maintenance, utilities, document
duplication/printing, consumables, travel cost and per diem for Project staff for
travel linked to the implementation of the Project, and salaries of contractual staff
for the Project (but excluding salaries of officials of the Recipient's civil service).
35. “Original Financing Agreement” means the financing agreement for the Original
Project between the Recipient and the Association, dated June 1, 2018, as amended
(Credit No. 6245-MG).
36. “Original Project” means the Project described in Schedule 1 to the Original
Financing Agreement.
37. “PIM” means Project Implementation Manual, the manual described in
Section I.B of Schedule 2 to this Agreement adopted on March 15, 2019.
38. “PMU” means the Project Management Unit, described in Section I.A.3 of
Schedule 2 to this Agreement.
39. “Procurement Regulations” means, for purposes of paragraph 85 of the Appendix
to the General Conditions, the “World Bank Procurement Regulations for IPF
Borrowers”, dated September 2023, except as otherwise provided in the Original
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Financing Agreement or the First Additional Financing Agreement, for contracts
awarded before the Signature Date.
40. “RAP” means “Resettlement Action Plan”, the Recipient’s documents entitled
Plan d’Action de Réinstallation (PAR) des Travaux de remise en état des
infrastructures de drainage et de protection contre les inondations – Version mise
a jour, dated March 2019, and Plan d’Action de Réinstallation (PAR) du projet de
site de confinement des boues de curagedated July 2019, and any subsequent ESIA
prepared pursuant to the RPF prepared and disclosed in-country and on the
Association’s website, with respect to an activity included under an Annual Work
Plan and Budget, which, inter alia: (i) outlines the policies and procedures to be
implemented under the Project that have potentially negative impacts on the
livelihoods, assets and land of the affected persons, as the said plan may be
amended and/or supplemented from time to time with the prior written consent of
the Association, and such term includes any schedules to such document;
(ii) contains a census survey of Displaced Persons and valuation of their assets;
(iii) describes compensation and other resettlement assistance to be provided,
consultation to be conducted with Displaced Persons about acceptable alternatives,
institutional responsibilities for the implementation and procedures for grievance
redress, and arrangements for monitoring and evaluation; and (iv) contains a
timetable and budget for the implementation of such measures.
41. “RPF” means “Resentment Policy Framework” the Recipient’s framework
disclosed in-country, and on the Association’s website on April 2018, and setting
forth the modalities for resettlement and compensation of, inter alia, Displaced
Persons, including guidelines for the preparation of any RAP under the Project, as
said framework may be amended from time to time with the agreement of the
Association.
42. “Safeguards Documents” means collectively the ESMF, RPF and any
Supplemental Safeguards Documents.
43. “SAMVA” means the Service Autonome de Maintenance de la Ville
d’Antananarivo.
44. “Second Additional Financing” means the additional financial assistance in
support of activities related to the Original Project that is granted through this
financing agreement.
45. “Service Provider” means Agence d’Exécution des Travaux d’Intérêt Public et
d’Aménagement (AGETIPA).
46. “Signature Date” means the later of the two dates on which the Recipient and the
Association signed this Agreement and such definition applies to all references to
“the date of the Financing Agreement” in the General Conditions.
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47. “SMA” means the Société Municipale d'Assainissement, as legal successor to
SAMVA for purposes of the Project.
48. “Stakeholder Engagement Plan” or “SEP” means a plan developed by the PMU to
ensure the participation and commitment of all stakeholders to the project
objectives during project implementation.
49. “Structural Urban Upgrading Approach” means the modality to choose and
prioritize investments recommended by the Detailed Urban Plan to ensure
structural and more consequential impact in the targeted project area.
50. “Supplemental Safeguards Documents” means the Canal C3 ESIA, the Canal C3
RAP and any ESIA and RAP prepared pursuant to the requirements of the ESMF
and the RPF.
51. “Targeted Areas” means project area defined covering the first and fourth
arrondissements of the CUA as well as the neighboring communes of
Bemasoandro, Andranonahoarta, and Anosizato Andrefana.
52. “Training” means expenses incurred by the Recipient under the Project for
workshops and training including purchase and publication of materials, rental of
facilities, course fees, study tours and travel and subsistence for participants,
trainees and trainers.
Section II. Modifications to the General Conditions
The General Conditions are hereby modified as follows:
1. Section 3.03 (Service Charge) and Section 3.04 (Interest Charge) are
deleted in their entirety and the remaining Sections in Article III are renumbered
accordingly, and all references to the Sections of Article III in any provision of the
General Conditions are understood to be to such renumbered Sections.
2. Paragraph 66 (Interest Charge) in the Appendix is modified to read as follows:
“66. “Interest Charge” means the interest charge for the purpose of Section 3.07.
3. Paragraph 100 (Service Charge) in the Appendix is deleted in its entirety and the
subsequent paragraphs are renumbered accordingly, and any reference to “Service
Charge” or “Service Charges” in any provision of the General Conditions is
deleted.
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Section III. Amendment to the Original Financing Agreement and the First
Additional Financing Agreement
1. Schedule 1 in the Original Financing Agreement and the First Additional
Financing Agreement is amended and replaced with Schedule 1 in this Agreement.
2. Sections I.A. and I.B. 2 of Schedule 2 of the Original Financing Agreement and
the First Additional Financing Agreement, and the corresponding definitions in
Appendix, are hereby amended and replaced with Sections I.A. and I.B.2 of
Schedule 2 and the corresponding definitions in the Appendix in this Agreement.
3. The table in Schedule 2 Section III of the Original Financing Agreement and of
the First Additional Financing Agreement is amended and replaced with the table
in Schedule 2 in this Agreement.
4. Schedule 2 Section III.B.2 of the Original Financing Agreement and of the First
Additional Financing Agreement is amended and replaced with the closing date in
Schedule 2 Section III.B.2 in this Agreement.